Super Micro Initiates Independent Investigation After Co-founder Indicted for Export Control Violations
Super Micro, headquartered in San Jose, California, announced an independent investigation and an internal review of its global trade compliance program. This follows the U.S. Department of Justice's indictment of co-founder Yih-Shyan Liaw and others for allegedly orchestrating a scheme to smuggle U.S.-made servers to China via Taiwan and Southeast Asia. Super Micro has suspended Liaw and a sales manager, and terminated a contractor.
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Super Micro, headquartered in San Jose, California, stated that the company has also launched an internal review of its global trade compliance program.
Last month, the U.S. Department of Justice indicted Super Micro co-founder Yih-Shyan Liaw, sales manager Ruei-Tsang Chang, and contractor Ting-Wei Sun, accusing them of orchestrating a scheme to transship U.S.-made servers to Southeast Asia via Taiwan.
These products were allegedly repackaged into unmarked cartons in Southeast Asia and smuggled into China.
Super Micro Computer was not named as a defendant in this case, but upon learning of the allegations, it suspended Yih-Shyan Liaw and Ruei-Tsang Chang and terminated its contract with Ting-Wei Sun.
The Department of Justice stated that the three individuals allegedly diverted at least $2.5 billion worth of U.S. artificial intelligence (AI) technology, including over $500 million worth of goods shipped between April and mid-May last year.
Reuters reported last month, citing procurement data, that over the past year, four Chinese universities, including two linked to the People's Liberation Army, purchased Super Micro servers equipped with restricted AI chips.
Reuters reports since 2024 have also shown that Chinese universities and research institutions previously acquired restricted chips through servers produced by Super Micro and other manufacturers.
Super Micro stated that the investigation is being led by two independent directors. The findings will be reported to the remaining independent directors of the board.
These directors have hired the renowned law firm Munger, Tolles & Olson to lead the investigation. Consulting firm AlixPartners has been engaged to provide forensic accounting expertise. (Compiled by Li Peishan) 1150408
Last month, the U.S. Department of Justice indicted Super Micro co-founder Yih-Shyan Liaw, sales manager Ruei-Tsang Chang, and contractor Ting-Wei Sun, accusing them of orchestrating a scheme to transship U.S.-made servers to Southeast Asia via Taiwan.
These products were allegedly repackaged into unmarked cartons in Southeast Asia and smuggled into China.
Super Micro Computer was not named as a defendant in this case, but upon learning of the allegations, it suspended Yih-Shyan Liaw and Ruei-Tsang Chang and terminated its contract with Ting-Wei Sun.
The Department of Justice stated that the three individuals allegedly diverted at least $2.5 billion worth of U.S. artificial intelligence (AI) technology, including over $500 million worth of goods shipped between April and mid-May last year.
Reuters reported last month, citing procurement data, that over the past year, four Chinese universities, including two linked to the People's Liberation Army, purchased Super Micro servers equipped with restricted AI chips.
Reuters reports since 2024 have also shown that Chinese universities and research institutions previously acquired restricted chips through servers produced by Super Micro and other manufacturers.
Super Micro stated that the investigation is being led by two independent directors. The findings will be reported to the remaining independent directors of the board.
These directors have hired the renowned law firm Munger, Tolles & Olson to lead the investigation. Consulting firm AlixPartners has been engaged to provide forensic accounting expertise. (Compiled by Li Peishan) 1150408